What happens when above-the-line media become direct? Chris Maloney (pictured below) investigates.

For as long as anyone cares to remember, the marketing industry has been divided by a line. A line which has categorised marketers and agencies as specialists in either above-the-line, below-the-line and more recently, online.

Each division has had its own skill set and unique way of measuring results, so that apples could never be compared with apples. Many direct marketers attempted to find a universal way to measure the value of marketing across media, but in the end most have shrugged their shoulders and learnt to accept that we are dealing with fruit salad, not apples.

However, as technology continues to advance, those mediums that we had once accepted as indirect, or above-the-line, are changing – and fast. In effect, all forms of media are becoming more direct. Why? Because marketers have always wanted more accountability and less wastage – and now we have technology that can deliver on those demands.

So the question really is: When all media becomes direct what does it mean for the marketing industry?

It means the end of the line. It means we can fire up the blender on this fruit salad. It means data and analytics are the new currency.

Which means it is time for direct marketers to stand up, grab the industry by the throat and drag it into the future.

To demonstrate the end of the line in effect, let’s take a look at how a few traditional above-the-line mediums are becoming direct.

How is TV advertising becoming direct?
Without a doubt, TV is still the most effective medium for mass communication, with the ability to reach millions of eyeballs simply by placing a 30 second spot. But as a medium it has its challenges. What with increased media competition pulling at consumers and advertisers demanding greater targeting and accountability, TV is at a pivotal stage in its lifecycle where it needs to adapt to remain relevant.

For direct marketing purposes, the most important adaptation is the introduction of digital video, or the ability to transmit data as well as audio and video, that is changing the TV into a two-way medium capable of direct marketing.

Here in Australia, FOXTEL’s Red Button Interactive Advertising has been around for a couple of years now and has really pioneered the two-way dialogue approach. It has enabled customers to interact by pressing a button to watch longer form branded content, request product samples and brochures, or even book test drives of new vehicles or mobile banker appointments.

But interactive direct response mechanisms will only do half the job in making TV a true direct marketing channel. The other side of the equation is the ability to target consumers in a one-on-one like fashion. Recently, we have seen a potential solution come in the form of addressable TV advertising.

The simplest explanation of the benefits of addressable advertising is the ability to deliver your tyre advertisement only to viewers who own cars. The goal is fully targeted, substitutional advertising, whereby two households will be watching the same show at the same time, and the household with the cat will receive the cat food advertisement, while the household with the dog will receive a dog food advertisement.
Although the scalability of this technology will take a few years, it is undeniable that it is coming and the opportunities for direct marketers are open ended.

How is radio advertising becoming direct?
When TV arrived on the scene, many thought radio would die. Far from the truth, radio continues to play an integral part in the lives of most people. From a marketer’s perspective, radio has some distinct targeting advantages. For starters, you can’t watch TV, read a newspaper, or open your mail while driving (well technically you can, but you really shouldn’t!). Radio, on the other hand, is a live omnipresent medium that is consumed at home, at work and in the car, offering unique targeting opportunities not available in other mediums.

In terms of direct response, the link between radio and online is well established, with more than 80 per cent of people who hear a relevant radio commercial referring to a website, visiting that website as a result. As a result, most radio advertisements now contain a URL as a call to action, which is often easier to remember than a phone number, particularly if it is supported by a comprehensive Search Engine Marketing campaign. Some brands have taken this radio/online integration to the next level by having the same voice/talent welcoming visitors to the website that they just heard about on the radio and guiding them around the site to a desired action.

But it is digital radio that direct marketers can really start getting excited about. At the simplest level it means more channels, which make customer segments easier to target, as well as potentially bringing in more listeners. And more channels also means less pressure on programme directors, which means brands have the opportunity to develop integrated branded programming to add value to distinct customer segments.
Indeed, this flexibility of channels and programming also brings about the opportunity for pop-up stations that exist for a short period of time for a specific event or even campaign. The launch of Pink radio in Australia is a great example of a pop-up station. Fortunately, it was not Pink songs 24/7, as the name suggests, as that would send even the biggest fan insane . . .

Much like the example of FOXTEL’s Red Buttons, the brains behind digital radio are also looking at ways to improve their direct response capabilities. One technology rumoured to being worked on currently is a tagging button. With a tagging button, if a listener likes something they hear – be it a song, an advertisement, or a competition – they can tag it, sending a link to their email inbox so they can buy the song, respond to the advertisement or enter the competition at a later time.

Digital radio will take a few years to reach critical mass, as it relies on external factors such as car manufacturers building it into their cars, but it will definitely change the way marketers approach radio. While they are building it into the cars, let’s hope they decide to also plug it into the GPS, so we can also look forward to location-based targeting.

How is outdoor advertising becoming direct?
Outdoor is a unique medium in that you can’t opt out of it, unless you decide to move to remote areas of the country. As that is not a viable option for most, outdoor advertising has a heightened responsibility to be targeted, relevant and engaging.

Over the last few years, many of the major suppliers have stepped up to the plate with bespoke innovative solutions featuring interactive touch, flatscreen technology, interactive sound, mobile interactivity, sampling and even scent. Much of this innovation is driven by the need to cut through, and also to satisfy the client, agency and consumer desire for ‘media firsts’.

Much like radio’s relationship with online for direct response, outdoor increasingly has a relationship with mobile, be that through Bluetooth, QR Codes, Wi-Fi or other technology. But it is this variety of mobile technologies that may actually be holding back the potential of outdoor interaction. It will be very interesting to see which technology wins out as smart phones diffuse throughout the population.

Regarding targeting, outdoor offers unique location-based opportunities, with different panels throughout cities targeting shoppers, business people, tourists, or commuters – and the message can be tailored accordingly. Brands can also have different messages for day and night on the same panel, again making the message extremely targeted and relevant for the consumer moment.

In terms of what the future looks like, outdoor faces more regulation from local government and councils than other media which can limit the boundaries of innovation. An agency in London has trialled a panel that changes creative depending on the gender of the person standing in front of it – and gets it right 95 per cent of the time. Now that would be true direct marketing, but there would be a few privacy concerns that would need to be worked through before we see this rolled out to the general public.

How is print advertising becoming direct?
We can’t really deny the inevitable decline of printed media readership any longer, as more and more consumers move to digital media. I think the satirical television programme The Daily Show segment where Jason Jones visits the New York Times newspaper features a quote that says it best:

‘What is black and white and red all over?
Your paper’s balance sheet’.

But the latest in nano-technology may just buck this trend, with the first video-in-print advertisement launched in the US Entertainment Weekly in September 2009.

The ad powered by technology developed by Americhip launched CBS’ Monday prime-time line-up in partnership with Pepsi Max. The battery powered video is about the size of a mobile phone screen and can handle up to 40 minutes of video. It is also rechargeable via a mini USB cord!
In another example of the print medium becoming digital, last year Esquire published the first magazine to use e-ink technology for their 75th edition. The magazine featured a cover that animated "The 21st Century begins now", and an inside cover ad that flashed the 2009 Ford Flex Crossover.

While this technology is pretty cool, what is more exciting is where the editor of Esquire magazine wants to take the technology. Namely, equipping the magazine with cellular technology so the pages can be continually updated over the course of the month the magazine is on sale. Maybe print isn’t dead, after all.

How is online advertising becoming direct?
Once the realm of annoying pop-up banner ads and spam emails, online advertising had to work hard to rebuild its credibility among consumers and advertisers alike.

While there was a few in the space before it, Google really paved the way for direct marketing in the online advertising space, when it introduced its Cost Per Click (CPC) advertising model. I liken the online channel to ‘direct marketing on steroids’ due to the immediate feedback and optimisation opportunities.

However, it is important to understand that not all of the direct response can be attributed to search engine marketing, with offline media still playing a key role in driving consumers online. What direct marketers should really be focusing on is managing the online purchase funnel from end to end. That is where demographic targeting, behavioural targeting and retargeting come in.

Under this model, demographic targeting sits at the top of the funnel where you target customers based on characteristics such as age and gender, minimising waste. Then, behavioural targeting finds customers whose online surfing patterns and habits indicate they will respond well to a specific offer. Then, retargeting can be used to reconnect with visitors who have previously expressed an interest such as visiting your website or clicking on a banner, increasing conversion rates.

Online behavioural targeting and retargeting are some of the more controversial topics in marketing today, as there is seen to be a trade off between the benefits of highly targeted relevant advertising and privacy concerns. In response to these concerns, industry bodies around the world have been proactive and started to develop standards and self-imposed guidelines, to ensure marketers are responsible and do not lose access to one of the most powerful tools in marketing today. 

In summary
This article has shown how each of the traditional above-the-line media are fast becoming capable of direct marketing, signalling the end of the line. It is quickly becoming apparent that soon the only difference between above-the-line advertising and traditional direct marketing will be a salutation, and even that is not far from the realm of possibility.

The marketing landscape will significantly change over the next five years because of the end of the line. Data and analytics will become the currency across all mediums and, in theory, that means direct marketers should be in the best position to make the most of the new world. That is, of course, if they accept that the end of the line is nigh.

   Chris Maloney – Australian Direct Marketing Association Young Direct Marketer of the Year 2008 – is a freelance strategic marketer: www.maloneyonmarketing.com